Tennessee sales tax at a glance
| Type of tax | Sales and use tax |
|---|---|
| State rate | 7% |
| Local rates | Average 2.61%, highest 2.75% |
| Average combined rate | 9.61% |
| Groceries | 4% state + localFood and food ingredients are taxed at a 4% state rate plus local tax. Candy, alcohol, dietary supplements and prepared food are taxed at 7% plus local. |
| Prescription drugs | ExemptPrescription drugs are exempt, including over-the-counter drugs bought with a prescription. |
| Clothing | Taxed (holiday, $100 cap)Clothing is taxed, except items of $100 or less during the yearly sales tax holiday (31 July to 2 August in 2026). |
Local averages are population-weighted figures from the Tax Foundation: State and Local Sales Tax Rates, Midyear 2026 (rates as of 1 July 2026). They are a guide, not the rate at any one address. For the exact rate where you buy, use the Tennessee Department of Revenue local sales tax rates.
Worked examples
$120 of groceries at the average local rate
| Rate | 4% grocery + 2.61% local = 6.61% |
|---|---|
| Price before tax | $120.00 |
| Sales tax | $7.93 |
| Total | $127.93 |
Working: $120.00 × 6.61% = $7.93. Groceries pay the 4% state food rate plus local tax. A soft drink or a deli sandwich on the same receipt would pay 7% plus local.
Working back from a $109.75 receipt at 9.75%
| Rate | 7% state + 2.75% local = 9.75% |
|---|---|
| Price before tax | $100.00 |
| Sales tax | $9.75 |
| Total | $109.75 |
Working back: $109.75 ÷ 1.0975 = $100.00, so the tax was $9.75. Most large Tennessee cities charge the 2.75% local maximum, so dividing by 1.0975 gives the pre-tax price for an everyday item under $1,600.
Big-ticket items: the single-article rules
Tennessee treats expensive single items differently. Local sales tax applies only to the first $1,600 of the price of a single article such as a car, a TV or an appliance. On top of the 7% state tax on the whole price, an extra 2.75% state single-article tax applies to the part of the price from $1,600.01 to $3,200. So the calculator's simple rate times price slightly overstates tax on items above $1,600; use it as an upper estimate, or work out the local part on $1,600 only.
Grocery rate and local changes
Food and food ingredients are taxed at a reduced 4% state rate, plus the full local rate in most places. Candy, alcohol, tobacco, dietary supplements and prepared food are taxed at 7% plus local. A 2026 law let metro governments cut local tax on food, and Davidson County (Nashville) lowered its local rate on food to 1.75% from 1 November 2026, giving a combined grocery rate of 5.75% there. Tennessee also holds a sales tax holiday each summer; in 2026 it ran from 31 July to 2 August, covering clothing and school supplies of $100 or less and computers of $1,500 or less.
Tennessee vs. neighboring states
| State | State rate | Avg. combined | Groceries |
|---|---|---|---|
| Tennessee | 7% | 9.61% | 4% state + local |
| Kentucky | 6% | 6.00% | Exempt |
| Virginia | 5.3% | 5.77% | 1% statewide |
| North Carolina | 4.75% | 7.10% | 2% local food rate |
| Georgia | 4% | 7.56% | No state tax; local tax applies |
| Alabama | 4% | 9.46% | 2% state + local |
| Mississippi | 7% | 7.06% | 5% (since July 2025) |
| Arkansas | 6.5% | 9.48% | No state tax since 2026; local |
| Missouri | 4.225% | 8.44% | 1.225% state + full local |
Average combined rates are from the Tax Foundation, midyear 2026 report. See sales tax rates for every state for the full table.